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Your Go-to Guide for How to Check LIC Surrender Value

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Life is full of unexpected twists and turns. Sometimes, circumstances may arise that prompt us to reevaluate our financial decisions. Understanding the surrender value of your LIC policy becomes crucial in such times. Surrendering a policy, however, should not be taken lightly, as it involves careful consideration of various factors.

In this article, we will guide you on how to check the surrender value of your LIC policy so that you have sufficient information on hand and are able to make an informed decision. By exploring the surrender value, you can assess the financial implications and weigh them against your current requirements and future goals.

What is a Surrender Value?

Surrender value refers to the amount that you, as an LIC policyholder, receive upon exiting the policy or terminating it before its maturity. The surrender value includes a portion of the premiums paid up till the date of surrender till the LIC plan was active. This amount is way lower than the premium paid initially for 3 years of the policy.

Once you surrender an LIC policy, the company will pay the surrender value - after the amount is paid, the policy coverage will stop. Note that once you surrender an LIC policy, there is no option to revive the same again.

Types of Surrender Values

Before understanding how to calculate LIC surrender value, it is important to know about the two types of surrender values.

Guaranteed Surrender Value

If a policyholder chooses the option of guaranteed surrender value, they will receive a predetermined amount called the Guaranteed Surrender Value if the policy is terminated before its maturity. The first-year premiums and any other premiums do not include additional premiums, premiums for accident benefits, or term rider premiums.

The proportion of the surrender value that will be paid out depends on the type of insurance and the year of surrender. This proportion, referred to as the surrender value factor, is typically determined by the policy standards. It also implies that the payout proportion will gradually increase as the policy reaches maturity.

Special Surrender Value

The special surrender value is applicable for policies where the policyholder has ceased paying premiums after a specific duration. During this time, although the policy remains in effect, the sum assured decreases. If the policyholder decides to surrender the plan, it is referred to as a special surrender value, which is higher than the guaranteed surrender value.

LIC Surrender Value Calculator: How to Calculate LIC Surrender Value?

The LIC surrender value calculator is a digital tool that helps you estimate the amount that you will receive in case you surrender the policy before it matures. To compute the numbers, you would need to provide this calculator with the details stated below:

  • Policyholder’s name
  • Type of policy
  • Contact details
  • Policy tenure
  • Premiums paid
  • Remaining premium amount
  • Mode of payment
  • Date of policy completion

Once you provide the aforementioned details, the online tool will calculate the LIC surrender value.

How to Check LIC Policy Surrender Value Online?

To check your LIC policy’s surrender value  online, follow the steps mentioned below -

  • Log into your user dashboard.
  • Click on the “Enrol Policies” tab and click on the Enrol New Policies tab.
  • Submit the details asked including policy number, premium amount, policyholder’s personal details, and more.
  • Once done, click on the ‘Enrol Your Policy’ tab.
  • Now. click on the ‘View Enrolled Policy’ tab and check the loans and bonus section. Here, press the ‘Click for Details’ button.
  • Check the LIC surrender value and the eligibility to surrender the policy.

Let’s have a look at what people are asking about how to check LIC surrender value in the FAQ section next.


Q1. Does surrender value include LIC’s vested incentives?

Ans: If the policy previously accrued bonuses prior to its surrender, the surrender value of those bonuses will be included in the special surrender value of the policy.

Q2. When can you surrender the ULIP?

Ans: The surrender of a unit-linked plan is only permitted after the initial five years of policy commencement. Note that even if the policy is surrendered earlier, the surrender value will only be disbursed upon the completion of the first five years.

Q3. How long do you have to wait to surrender your LIC policy?

Ans: The policyholder must wait for a full 3 years before they are eligible to surrender the plan and receive the corresponding surrender value. If it is a participating policy, the bonus will be added according to the current rules. However, it is not advisable to surrender the policy as the surrender value will always be relatively lower compared to the premiums paid for the plan.

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